Play Meter

STATE OF THE INDUSTRY Valerie Cognevich A '92 results track trends round of applause goes out to the dedicated and loyal operators who took time out from their busy schedules to fill out our survey. In fact, an even bigger pat on the back is in order because of how fast it had to be done. Our mailing service mistakenly sent the surveys out "bulk" rate, which meant they were often showing up on desktops after the deadline. This report, like those before it, is based solely on the responses we receive from operators. We learned long ago that it's usually the same ones who will spend the time telling us all about their businesses, so we can compare one year to previous years to track trends. We've seen the rise and drop of many types of equipment from video games and pinball to cranes and basketball games. During the past two years there's seemingly been obsessive emphasis on video gaming. Oregon knocked the wind out of a stunned industry when operators, who had put forth tireless efforts to legalize video lottery were abandoned. Louisiana was the only other state to have video pokers (not called video lottery there) up and running in 1992. The industry has been following the progress of Louisiana, learning from its successes and mistakes. Introduction In the past, the industry depended on so few types of equipment that when revenues dropped, no matter how slightly, bad times were predicted. Of course, we most often link the coin-op entertainment industry with video games and have become conditioned to PLAY METER 8 1993 DIRECTORY gauging the entire industry on video game prosperity or lean times. When you begin to digest the numbers set before you, you may wonder why the industry gross of $9 billion is so much more than it has been for the past several years. This year we included vending machines (mostly cigarette machines), which we have never included in the total before. We did this because nearly 40% of the operators who answered the six-page survey said they operate vending equipment, and the most common type was cigarette machines. Another 24% said they do not operate any type of vending equipment but are seriously considering it. While full-line vending may be out of the realm of possibility for many operators, the four Cs-cigarettes, coffee, cola, and candy-can fit nicely into an existing business. There's a general consensus among operators that viable options are vital in keeping an operating company successful. VIDEO GAMING Another factor that accounts for the high industry gross figure is video pokers. While the machines are legal for payouts in just a few states, gray area games are a fact of life . It 's hard to get honest, straight answers on a touchy subject in a survey . Last year we figured that only 20% of respondents operated video gaming machines. After this year's survey we feel that 20% is understated. One state association director put the impact of gray area equipment in perspective when he said that